Crypto Weekly Market Wrap 18th August: Bitcoin Highs, Do Kwon Fallout, SEC Moves and Global Market Moves

Welcome to our recap of the past week, where we will discuss the most impactful events in the financial and crypto industries. Bitcoin reached new all-time highs, and Ethereum ETFs took media spotlights despite rising inflation. Do Kwon admitted to fraud, and the SEC delayed a Solana ETF ruling until October 2025. Moreover, companies boosted their portfolios by adding holdings. Ensure to read to the end to grasp this crypto weekly market wrap of 18th August fully.

Do Kwon Admits to U.S. Fraud Charges in TerraUSD Collapse

On August 12, Do Kwon, co-founder of Terraform Labs, pleaded guilty in a New York courtroom. He admitted to conspiracy and wire fraud about the TerraUSD and Luna collapse. The Manhattan U.S. Attorney cut Kwon’s sentence to 12 years after both sides struck a plea deal. Earlier this year, Kwon flat-out denied the charges, but the court set December 11 as his sentencing date.

CRYPTO IN THE COURT: Do Kwon Pleads Guilty so 12 Year Sentence to Be Advocated for by US & $19 Million Fine- Inner City Press story https://t.co/4Ir4cbrR97 Extra (what awaits in Seoul) on X for Subscribers https://t.co/D918q4uECv & Substack https://t.co/2vRZC5IpGj

— Inner City Press (@innercitypress) August 12, 2025

Authorities in Montenegro caught Kwon using fake documents, then extradited him to U.S. officials after South Korea also pushed for his arrest. On top of the criminal case, the SEC hit him with an $80 million fine and barred him from any future crypto activity. The civil settlement amounts to $4.55 billion.

Solana ETF Decision Delayed Until October 2025

The SEC delayed the timeline for approving Solana ETFs by Bitwise and 21Shares. The new deadline is 16 October 2025. The decision was originally scheduled to be announced on August 17, but was delayed to give more time to review. The two companies propose to list on the Cboe BZX Exchange. According to ETF analyst James Seyffart, such delays were also observed on Canary Funds and Marinade Finance. This round of extensions utilised the maximum allowable delay under the SEC.

Ripple Case Enters Final Phase After Appeal Withdrawal

On August 16, the SEC provided the Second Circuit with a final update. This procedural update ascertains that the two parties are in a process of completing the settlement, having dismissed their appeals jointly earlier this month. The motion to jointly dismiss the case must be approved by the court before the case can formally be concluded.

Federal Reserve Ends Oversight Program for Crypto Activities

The Federal Reserve officially ended its Novel Activities Supervision Program. Announced in August 2023, this program monitored banks engaging in crypto and technology-based finance. Regulators set out to track crypto-related banking activity, and they’ve now built it into their normal supervision process.

Fed is winding down its "novel activities" supervision program, a specialized unit that oversaw banks engaged in crypto & fintech partnerships — including, presumably, Evolve Bank & Trust pic.twitter.com/7zpV3MhmPI

— Jason Mikula (@mikulaja) August 16, 2025

In 2023, the Fed issued a similar supervisory letter but later pulled it back, showing a softer stance under the Trump administration. That move followed an April reversal of its earlier guidance that had discouraged banks from dealing with crypto. Other agencies, like the FDIC, also loosened their approach. Today, banks can interact with crypto without having to notify regulators in advance.

Google Clarifies Non-Custodial Wallets Remain on Play Store

According to Google, non-custodial wallets will not be affected by the new licensing regulations that will begin on October 29. The update was in response to developer confusion. The regulations cover wallet apps across 15 jurisdictions, including the U.S. and the EU. Initially, it appeared that there would be equal regulation of custodial and non-custodial wallets.

Following an industry pushback, Google clarified that self-custody wallets are out of scope of its exchange and wallet policy. Apps such as MetaMask or Trust Wallet will not fall under the burden of licensing, but the custodial platforms will be obliged to become compliant with the FinCEN or MiCA requirements.

Pantera Capital Invests $300 Million in Digital Asset Treasuries

Pantera Capital revealed an investment of $300 million in multiple crypto treasury companies. These companies store crypto as a core strategy. This fund has investments in Bitcoin, Ethereum, Solana, and other major tokens. BitMine Immersion turned out to be one of the top performers in the fund. The firm currently has 1.2 million ETH valued at $5.3 billion. Pantera views DATs as preferable to ETFs, in the view of earning returns through staking and lending. These treasuries operate as public companies, with stock representing the growing digital asset reserves.

“7 Siblings” Whale Group Liquidates $88 Million ETH

Whale group “7 Siblings” sold 19,461 ETH worth $88.2 million in 15 hours. It is their biggest sale in years. Their ETH possession adds up to 1.21 million ETH, worth approximately $5.6 billion. The latest sale was made at an average price of $4,532 per ETH.

The mysterious group "7 Siblings" with 1.21M $ETH($5.6B) is selling $ETH!

Over the past 15 hours, 7 Siblings has sold 19,461 $ETH($88.2M) at an average price of $4,532.

Earlier this year, they bought 103,543 $ETH($229.7M) at $2,219 between Feb 3–Apr 7.https://t.co/zbJlsNo6NA pic.twitter.com/ddvsXueVsH

— Lookonchain (@lookonchain) August 13, 2025

They purchased more than 100,000 ETH between February and April, including a notable $42 million purchase in April. One of the platforms where they deposited significant assets was Aave v3.

Truth Social Files for Bitcoin ETF with Direct Exposure

Trump Media and Technology Group made a filing seeking to launch a Truth Social Bitcoin ETF under the ticker “B.T.” The proposed ETF will directly own Bitcoin and track changes in price. It will be listed by NYSE Arca with SPONSOR Yorkville America Digital. Custody and liquidity will be run by Crypto.com. The ETF application adds to an increasing list of filings seeking to provide direct crypto exposure to retail investors.

Bullish Crypto Exchange Raises $1.1B in IPO

Bullish went public on the NYSE, raising $1.1 billion in its IPO. The shares debuted at $90, rising to $118 and then retreating to $70 by the end of the day. Despite volatility, the offering was priced Bullish at more than $10 billion. The deal was oversubscribed more than 20 times, with interest coming in from BlackRock and ARK.

U.S. Banks Warn of Stablecoin Yield Risk to Deposits

Major banking organizations cautioned Congress on yield-bearing stablecoins concerning the GENIUS Act. They worry that such products might draw away $6.6 trillion of deposits from traditional banks. The issue revolves around offering interest by stablecoin issuers via affiliates. According to banks, this might undermine savings and lending systems. The Bank Policy Institute pointed out that Stablecoins need to be interest-free. The plan follows rapid growth in stablecoin activity. These gaps could soon be filled by regulators to save deposit markets.

U.S. Bitcoin Reserve Strategy Will Use Seized Assets

The United States Treasury Secretary, Scott Bessent, made clarifications for the strategic Bitcoin reserve. The reserve will not be constructed on taxpayer funds, but rather confiscated BTC. He stated that the reserve would expand by implementing budget-neutral measures. This is a deviation from the previous policy that involved the auctioning of seized Bitcoin.

TREASURY SECRETARY SCOTT BESSENT SAYS THE U.S. WILL **NOT** BE BUYING ANY BITCOIN

THEY WILL HOLD THE $15-$20 BILLION IN BITCOIN THEY ALREADY HAVE AND CONFISCATE MORE

WEIRD, BECAUSE I WAS PROMISED A STRATEGIC BITCOIN RESERVE

MAKES SENSE WHY BO HINES RESIGNED NOW, EH? pic.twitter.com/MGu90xOBqZ

— Walker⚡️ (@WalkerAmerica) August 14, 2025

Chainlink and ICE Partner to Power On-Chain Forex Data

Chainlink and Intercontinental Exchange (ICE) unveiled a data partnership. The market rates on FX and metals provided by ICE will now drive the Chainlink Data Streams, serving the 2,000+ applications and institutions that leverage Chainlink infrastructure. The ICE feed space provides reliable international data through hundreds of marketplaces. Incorporating it into Chainlink enhances the on-chain pricing accuracy. This step enables faster, more reliable DeFi transactions. Institutions are now able to construct tokenized products with trust in the data integrity.

BitMine Expands ETH Holdings with $600M Purchase

In 10 hours, BitMine Immersion Technologies bought 135,135 ETH, amounting to $600 million. The acquisition was a result of OTC transactions with firms such as Galaxy Digital and BitGo. This increased its Ethereum balance to 1.297 million ETH, currently valued at $5.75 billion. BitMine is transforming its mode of mining to treasury-based.

Monero Network Attacked, Kraken Suspends Deposits

Kraken suspended Monero (XMR) deposits after a 51% network attack. Mining pool Qubic amassed most of the hashpower and reorganized six blocks, making 60 blocks orphaned. This casts major doubts on the integrity of transactions and possible double-spending risks.

A 51% attack on Monero has raised concerns over network security, prompting crypto exchange Kraken to suspend Monero deposits as a precautionary measure. Withdrawals and trading remain available, and deposits will be resumed once the network is confirmed to be secure.…

— Wu Blockchain (@WuBlockchain) August 17, 2025

Qubic was claimed to have been building hashpower over several months. Kraken confirmed withdrawal and trading remain open at the moment. Deposits will be restarted as soon as the network stabilizes and the risk subsides.

Shanghai Court Jails Digital Collectible Fraud Leader

Wang Mou was sentenced to 8.5 years in prison by the Shanghai No.1 Intermediate Court because of fraudulent fundraising. His group issued AI-generated digital collectibles through blockchain and secured illicit finance. The government slapped him with a fine of 550,000 yuan and highlighted the irregular licensing in the sector.

Trump-Backed Miner Eyes Expansion in Asia

Backed by Donald Trump Jr., American Bitcoin has planned acquisitions in Japan and Hong Kong. The company seeks to acquire a listed company in Japan and tap into the Hong Kong market. This move will follow the crypto-treasury strategy at MicroStrategy. They aim to amass huge amounts of Bitcoin through corporate possession. American Bitcoin will also go public through a reverse merger with Gryphon Digital Mining. The filing is set for September on Nasdaq. The redemption may increase its capital access and crypto adoption in Asia.

Hong Kong Issues Custody Standards for Crypto Platforms

Hong Kong’s SFC issued custody guidelines to licensed virtual asset platforms. The regulations include cold wallet storage, using a third-party custodian, and real-time monitoring. They additionally impose responsibilities on top management regarding customer asset security. The goal is to avoid cases like the recent global custodial failures. This initiative falls under the Hong Kong regulatory roadmap known as ASPIRe. It aims to increase investor protection and stimulate innovation. To remain compliant, platforms must adopt these practices.

Kazakhstan Unveils Region’s First Bitcoin ETF

Fonte Capital introduced the first spot Bitcoin ETF in Central Asia on Astana International Exchange. This ETF is physically covered by Bitcoin and began trading on August 13. BitGo Trust, which is regulated in the U.S., would serve as a custodian, offering $250 million in insurance.

Kazakhstan is entering a new era for digital assets.

Fonte Capital has introduced Central Asia’s first spot bitcoin ETF on the Astana International Exchange.

The BETF fund is physically backed by bitcoin, with custody from BitGo Trust.

Through secure, U.S.-regulated cold… pic.twitter.com/CgDjZ6ZDaj

— BitGo (@BitGo) August 13, 2025

Kazakhstan has gradually liberated its markets to digital asset innovation. The ETF provides transparency, custody assurance, and convenient access to Bitcoin. It presents a precedent to other countries in Central Asia considering crypto adoption.

Thailand Enables Crypto Payments for Tourists

Thailand will introduce the TouristDigiPay system on August 18, which will enable tourists to convert crypto into Thai baht. Through KYC and AML checks, the program processes QR code payments. Foreign tourists are limited to 50,000 to 500,000 baht per month. It runs in a regulatory sandbox with the supervision of the central bank. The Bank of Thailand also introduced a “Tourist Wallet” to cater to foreign travelers in countries without QR payment mechanisms. This trend simplifies digital payments in the tourism arena.

Metaplanet Buys More Bitcoin, Now Holds 18,113 BTC

Metaplanet, a publicly traded Japanese company, purchased 518 BTC valued at $61.4 million as part of its treasury. This purchase increased its total holdings to 18,113 BTC at an average price of 101,900. Its overall cost of purchase remains at 1.85 billion, showing its long-term confidence in Bitcoin. Metaplanet is establishing itself as a large corporate Bitcoin holder, alongside companies such as MicroStrategy.

Paxos Applies for Federal Charter to Expand Oversight

Paxos applied to the OCC to convert its New York trust charter to a national charter. The move would place the blockchain company under federal control. The firm strives to achieve the utmost standards of safety and transparency. Paxos is already regulated by the authorities in Europe, Singapor,e and Abu Dhabi.

Today, we announced that we have filed an application to convert our NYDFS trust charter into a national trust charter under the Office of the Comptroller of the Currency.https://t.co/gVMdwteuLI

— Paxos (@Paxos) August 11, 2025

CEO Charles Cascarilla stressed the strategic value of federal authorization. Paxos is seeking to scale its tokenization and infrastructure services internationally. All tokens issued by Paxos are 1:1 backed by U.S. dollars and equivalents. The clients will be able to receive constant service throughout the transition period.

Gemini Files for Nasdaq Listing Amid Declining Revenue

Crypto exchange Gemini submitted an IPO on the Nasdaq Global Select Market. The firm intends to trade under the ticker symbol GEMI with dual-class shares. The Winklevoss twins will have majority voting control under the Class B shares. The IPO will be underwritten by the major banks like Goldman Sachs and Morgan Stanley. Financials in the S-1 reveal mounting losses. Last year, Gemini reported a net loss of 158.5 million, and an estimated 282.5 million by the middle of 2025. The revenue decreased to 67.9 million, and liquidity declined steeply. Amid the financial struggles, the firm is still moving towards an IPO.

BTCTurk Suspends Withdrawals After Suspected $48M Hack

BTCTurk, a Turkish crypto exchange, halted deposits and withdrawals after a suspected exploit of $48 million. Blockchain security companies reported suspicious activity on their hot wallets on several chains. The affected networks included Ethereum, Arbitrum, Avalanche, Base, Optimism, Mantle, and Polygon. The stolen funds were converted into ETH and transferred to two main addresses.

Cyvers Alerts was the first to report the incident, and BTCTurk promptly responded. The exchange categorized it as a technical problem, although no official report on a hack was issued. Trading in Turkish lira continued unaffected.

Digital Asset Investment Products Market Overview

Digital asset funds recorded inflows of $3.75 billion last week, ranking as the fourth-largest on record, according to the CoinShares report. The surge lifted total assets under management to $244 billion on August 13 after a stretch of subdued trading. The United States drove nearly all inflows, while Canada, Hong Kong, and Australia added smaller amounts.

Digital asset funds recorded $3.75B inflows last week, the fourth-largest ever recorded.🔥$ETH dominated the flows with a record-breaking $2.87B, accounting for 77% of the total.

Total AuM hit an ATH of $244B, per CoinShares. pic.twitter.com/lK9OK6gGlp

— Lucky (@LLuciano_BTC) August 18, 2025

Ethereum attracted the majority, pulling in $2.87 billion, equal to 77% of total inflows. Its year-to-date inflows reached $11 billion, outpacing Bitcoin on a proportional basis. Bitcoin added $552 million, though its growth rate lagged behind. Solana and XRP also gained, drawing $176.5 million and $125.9 million, respectively. In contrast, Litecoin posted $0.4 million in outflows while Ton lost $1 million. Brazil and Sweden registered modest withdrawals as well, tempering the otherwise positive week.

Bitcoin Price Performance

The flagship asset, Bitcoin, set a new record last week, surging to $124,457 on August 14. Despite the surge, during this period, BTC lost over 3% with its market cap and trading volume dropping to $2.3 trillion and $68 billion, respectively. As of this writing, BTC has been trading around $115,710, with a decline of 2% over the past 24 hours.

Looking at the technical indicators, BTC’s uptrend is losing momentum. Following several weeks of green candlesticks, Bitcoin is displaying signs of retracement. The RSI has dropped from the overbought region to 61 levels, indicating signs of exhaustion. Moreover, the MACD line is on the verge of a crossover with the signal line while the green bars on the histogram fade away. With the selling pressure active, BTC could face a further drop if the buyers don’t take the lead.